Bitcoin Proponents Lash Out At Lawmakers for Only Minor Changes to Infrastructure Tax Bill

By Bhushan Akolkar
Published August 6, 2021 Updated August 6, 2021
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Bitcoin Proponents Lash Out At Lawmakers for Only Minor Changes to Infrastructure Tax Bill

By Bhushan Akolkar
Published August 6, 2021 Updated August 6, 2021

The much-criticized crypto tax introduced with the $1 trillion bipartisan infrastructure bill has become a matter of limelight. Two camps of the U.S. Senators have been formed which are for and against the bill.

The criticism surrounds having an unclear definition and the fact that it includes all stakeholders in the crypto economy including miners, and wallet providers. After much criticism, Senators Mark Warner and Rob Portman proposed a “last-minute amendment” to the bipartisan infrastructure bill.

The amendment excludes proof-of-mining and providers of hardware and software wallets. However, it still includes proof-of-stake validators and other crypto providers who will be subject to taxation.

Now the news is that the White House is officially supporting this amendment. Crypto proponents have said that such an arrangement is absolutely “unworkable”. Angel investors and entrepreneur has lashed out at the bill stating:

Make no mistake, this is a backdoor Bitcoin ban. Compliance is impossible. Their intent is to criminalize full nodes, lightning nodes, and most Bitcoin wallets. And they are not really in favor of proof-of-work; the very next bill will include some ESG thing to attack that too.

Is America Following the China Way?

Over the last two months, China has initiated a strict crackdown outlawing Bitcoin and all crypto-related activities in the country. Analysts are saying that this will severely discourage crypto players from staying in America who will then look at moving to other places.

Senators Cynthia Lummis, Pat Toomey, and Ron Wyden who are in the opposite camp have proposed a rival amendment that contains a broad list of exemptions consisting of entities like  “validating distributed ledger transactions,” entities “developing digital assets or their corresponding protocols” along with miners. Wyoming Senator Cynthia Lummis also confirmed the same n her recent tweet:

Senator Toomey also tweeted: “By clarifying the definition of broker, our amendment will ensure non-financial intermediaries like miners, network validators and other service providers are not subject to the reporting requirements specified in the bipartisan infrastructure package”.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan Akolkar
820 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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